2019 is poised to be another busy year for the real estate market. We will likely see the continuation of some current conditions, as well as new developments that will shift buying and selling activity.
It will remain a seller’s market, but only slightly
Sellers are still expected to see favorable conditions throughout 2019, but that doesn’t mean that the market will behave exactly as it has for the past several years. Home prices will rise more slowly in most markets than they have since the rebound of the housing crisis, at an increase of just over 2%.
Inventory will still be low on entry-level homes, but will likely improve on higher-end properties in certain markets
The recent trend of tightening inventories will continue to impact buyers in the new year. Buyers who are looking for entry-level properties will still find limited options that will get snapped up quickly, often above asking price. For homes in the mid to upper price range, however, inventory levels are expected to increase.
Millennial buying habits will drive a greater share of the market
Millennials, now the largest generation in the workforce, are projected to account for the lion’s share of mortgages in the U.S. Millennial buying preferences will be important for sellers and the market overall for the foreseeable future. Expect housing to shift to urban centers, smaller homes, access to public transit, and a high walkability score.
Tax code changes will impact buying behavior
April 2019 will mark the first time that taxpayers either receive refunds or pay their balances based on the new tax code. Market observers will be following transaction activity in the immediate aftermath of this period to see what effects new tax laws will have on short and long-term market trends.
No matter what is happening with the real estate market in 2019 and beyond, you need the assistance of experienced real estate professionals to help you navigate the process of buying or selling. The knowledgeable consultants at Parker Group are ready to work with you to make your real estate dreams a reality, so contact us today to begin your journey towards a new home